CHIRAGH SOCIAL WELFARE SOCIETY,CHIRAGH ENCLAVE vs. ASSESSING OFFICER WARD 30(1) DELHI, DELHI

ITA 2658/DEL/2026Status: DisposedITAT Delhi19 August 2026AY 2024-255 pages
AI SummaryAllowed

What were the facts?

The assessee, a social welfare society, filed its return of income declaring a surplus below the basic exemption limit. The CPC processed the return under Section 143(1) denying the basic exemption and applying the maximum marginal rate due to indeterminate member shares. A rectification under Section 154 and subsequent appeal to the CIT(A) were unsuccessful.

What did the Tribunal hold?

The Tribunal held that the principle of mutuality applies as the society receives funds from its members for their mutual benefit and does not distribute profits. Therefore, the denial of the basic exemption limit and the application of the maximum marginal rate were incorrect.

What were the issues?

Whether the principle of mutuality applies to the assessee society and if the basic exemption limit is available despite indeterminate member shares being declared.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 154,Section 164

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH

Hearing: 30.06.2026Pronounced: 19.08.2026

PER M. BALAGANESH, A. M.:

The appeal of the assessee arises out of the order passed by the Commissioner of Income Tax, Appeal Addl/JCIT(A)-2, Bengaluru [hereinafter referred to as ‘ld. Addl./JCIT(A)’, in short] in Appeal No. 2658/Del/2026 for A.Y. 2024-25 dated 15.01.2026 which in turn arises out of the order passed by the Assessing Officer, CPC, Income Tax Department, Bengaluru (hereinafter referred to as ‘ld. AO’) passed u/s 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 14.03.2025. 2. The assessee has raised the following grounds of appeal before us: - “1. That on facts and in law, the order dt:15th January 2026, passed by the Learned Addl/JCIT(2) Bengaluru (DI

The order continues below.

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